The Reserve Bank Of India Sells Dollars To Oil
Companies: In its effort to prop up its collapsing
rupee, the RBI said it will enter into USD-INR swaps with
state-owned oil-marketing companies.

"The RBI will meet the entire daily dollar requirement of three
public sector oil-marketing companies through a sell/buy USD-INR
swap for a fixed tenor, thereby removing the largest source of
dollar demand from the market," noted Morgan Stanley's Hans
Redeker.

The Brazilian Central Bank Raises Rates: Late
Wednesday, the BCB raised its benchmark interest rate by 50 basis
points to 9.00%. In the past four meetings, the BCB has raised
this rate by a total of 175 basis points.

"Contrary to our ongoing view, the passthrough inflation pressure
due to currency depreciation – although mostly built into our
inflation forecasting model – could necessitate a further hike
through Q4 and Q1 next year," said Societe Generale's Dev Ashish.
"This would particularly be the case if the currency remains at
depreciated levels for a long enough period of time."